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Old 09-09-2020, 06:49 PM   #41
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You'll probably consider all those numbers to be bargains after the state bankruptcy is settled.


I am from Illinois. That is what I worry about. I know the state is considering taxing retirement income and I expect they will in some fashion. I would love to get out now but DW is not on board. Sigh...
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Old 09-09-2020, 07:51 PM   #42
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I am from Illinois. That is what I worry about. I know the state is considering taxing retirement income and I expect they will in some fashion. I would love to get out now but DW is not on board. Sigh...


+1. I just hope to get out before retirement income is taxed and before there is an exit tax.
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Old 09-10-2020, 04:03 AM   #43
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It pays if you live in IL, for many.

Property tax is 2.7% of value. So we pay just over $5K property tax on a $200K house.
Sales tax is 10% (State + County + city).
State income tax is 4.95%

The redeeming thing in IL is that pension/IRA money is not taxed (yet).



The military got me out of Chicago. My entire family still lives in parts of Illinois. They all constantly b^tch about the state's financial situation, but all of them will die in Illinois!


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Old 09-10-2020, 08:05 AM   #44
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+1. I just hope to get out before retirement income is taxed and before there is an exit tax.
From what I gather, there are many more likely things to worry about; no state has a true exit tax. There are things called exit tax that aren't (on the gains from sale of property in the state). That would be a great play, if you could get away with it, though: get domicile settled elsewhere, then sell real property in the former state that would have taxed you on the gain. But how many states tax you on the gains on your primary residence when you buy another residence? Seems like you keep rolling it forward and the last one you get an exclusion.
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Old 09-10-2020, 09:43 AM   #45
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I am from Illinois. That is what I worry about. I know the state is considering taxing retirement income and I expect they will in some fashion..... Sigh...
Same here..

I think a major thing holding back taxing retirement income is the flat tax, as it would tax everyone getting a pension/IRA so wildly unpopular.

IL big problem is every time they increase the tax rate, they just spend more, instead of paying off debts. They use to tax at 2.5% until 1988.
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Old 09-15-2020, 05:48 PM   #46
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Its all about your intentions matching the records. If you intend to be a full time resident the records would show that.
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Old 09-15-2020, 06:39 PM   #47
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My brother sold his house in NY. He already owned a house in Florida. At that point he became a Florida resident. He now also rents a condo in NY for snowbirding.
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Old 09-15-2020, 07:11 PM   #48
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All of these discussions about one kind of tax in one place or another make me chuckle.... any discussion of costs has to be all encompassing and cover your full budget living somewhere for a year or is meaningless.

I retired to South America. My property tax was 1500 on a $325,000 dollar home and I pay virtually no other taxes except a VAT, like a sales tax. Of course I still pay Federal US taxes. But depending how you live it can be as expensive here as the Average cost in the US or only 60% of the cost of the US.

I do have a vacation home in CT that we also rent out sometimes on AirBnB. Nothing like stamps in your passport to prove non residency. A good friend recently moved to Florida and was extolling the virtues of living there. Based on our side by side comparisons our costs are quite similar, we just spend our money differently is all.
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Old 09-15-2020, 10:14 PM   #49
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Your calculations should include:

State and local sales taxes.
State income tax rates at your income level. (My state doesn't tax the first $64K of unearned income if you're over 65. The $3K in book royalties over the past 12 months falls into that category.)
Property taxes and insurance.
Medical costs.
Fuel prices and vehicle insurance costs if you drive.
Grocery costs - typically not much different in adjacent states but possibly major differences in a longer move.
Utility costs electricty, gas, water, sewer, internet, cable TV (and the quality of those services) - some places are much more expensive than others.

Add some value for people you know in the area, places you want to be in the area, etc. If you like opera and the only local entertainment is blue grass - or vice versa, you may not be happy there. Same for religion and other things.
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Old 09-16-2020, 08:41 AM   #50
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I'll just add that you need to look at total tax burden and not just income tax. Items such as property tax, school tax, road tax or tolls, sales tax, vehicle reg fees, other taxes added onto utility bills, as examples. So while you may save on income tax, the new state may get you paying in other ways that there is not as much savings as you thought there would be.
In my opinion, all states will get something out of you. Each state has different methods to make that happen. Just some states take a bigger bite than others. Without getting on a political soapbox, you can do your own investigating. Just look at total tax burden.
This. Texas has no state income tax, but sales & property taxes can be high.

If I had my way, the use would go to a straight consumption tax for individuals and businesses- no exceptions- to fund the govt. including universal hc for all (we don't need but many do). That would capture the hidden $ (ppl working for cash- I know quite a few) on all purchases made by these folks. I"m not a mathematician, so I don't know how that could be accomplished- but I bet someone in these forums does , based on how much I've learned when surfing this site.
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Old 09-16-2020, 09:09 AM   #51
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Our choice in moving to (and Staying) was the following in the order presented.

1) Availability of Healthcare
2) Quality of Healthcare
3) Quantity of HC Specialists in a given area
4) Cost of Healthcare (Really ACA Not Location)
5) Weather
6) Cost of high quality housing close to the beach
7) The Beach
8) Must not be a LCOL area (Services are typically poor there)

Taxes, insurance etc. really were not criteria. We personally do not like LCOL areas, the ones in Florida look pretty run down. We prefer MCOL (Upper Middle Class) where people have more of a pride of home ownership, services are plentiful and there is a lot to do. But again all aspects of Healthcare came way above others.
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Old 09-17-2020, 03:42 AM   #52
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I keep thinking that i would buy a condo.
Be sure your condo is outfitted with hurricane shutters because you probably won't be heading to Florida to do hurricane prep. You'll just get to watch things unfolding from afar.

Also, be sure to factor additional assessments to do building repair after the hurricane blows the roof off or damages common area property. All the common area damage will be paid by the residents. At least, what is not covered by insurance. The wind portion of most homeowners/property insurance policies have a percentage of property value deductible (2%-4%) versus a fixed deductible.

Also, I would hate writing that monthly condo charges check ($400-$500) for the 6 months I wasn't there to enjoy the amenities.
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Old 09-17-2020, 05:36 AM   #53
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My brother bought a home in FL and is keeping a lake house in SC for the summer. He's a tax CPA so I'm sure he knows how to qualify as a FL resident.

I'd have two concerns. One is that FL typically got a lot of tax revenue from tourism. Not sure how well that's going to work now. Will they increase sales, gasoline or property taxes? Let the infrastructure fall apart and cut back on servuces? The other is windstorm insurance. I'd guess it's going to be very expensive anywhere in FL, even if you're not on the coast, and the cost is going to rise faster than general inflation.
I'm buying a house right now in FL. Wind insurance is going to be about $250/mo and flood insurance (which I declined because we are in a good zone) would be around $500/mo. This is a $300K home. Just FYI and for future reference.
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Old 09-17-2020, 06:03 AM   #54
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Flood insurance in FLA is ~$500 a YEAR, not per month.
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Old 09-17-2020, 06:29 AM   #55
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I'm buying a house right now in FL. Wind insurance is going to be about $250/mo and flood insurance (which I declined because we are in a good zone) would be around $500/mo. This is a $300K home. Just FYI and for future reference.
Wow, what part of the state are you in? We are in the Orlando area and our annual homeowners (which includes wind) is about $1500 with a fixed deductible (many are a 2%-4% percentage deductible for wind) with a rebuild cost of about $385,000. You must be near the coastline.
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Old 09-17-2020, 07:00 AM   #56
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Interesting insurance cost claims here. We are 1 (Yes One) mile from the beach in a 3200sqft home on a barrier island in an "X" Flood zone, built in 2002 of concrete with a tile roof. Values are around $800k.

Home insurance is $1300 a year with a $1k deductible and Flood insurance is $480.
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Old 09-17-2020, 08:22 AM   #57
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Be careful regarding what No Income Tax state you move to. Slowly but surely, they are becoming very rare. Some are discussing a capital gains tax in my home state of Washington as a way of getting a foot in the income tax door. We'll see where that goes.
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Old 09-17-2020, 08:31 AM   #58
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Flood insurance in FLA is ~$500 a YEAR, not per month.
You're right, of course. My mistake - thanks for correcting.
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Old 09-17-2020, 08:33 AM   #59
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Wow, what part of the state are you in? We are in the Orlando area and our annual homeowners (which includes wind) is about $1500 with a fixed deductible (many are a 2%-4% percentage deductible for wind) with a rebuild cost of about $385,000. You must be near the coastline.
I am near the coast, 2 blocks from the beach, but as was corrected above, that flood number was per year, not per month. Sorry for the confusion!
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Old 09-17-2020, 10:07 AM   #60
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Here is the Michigan form to change domicile. I can't see anything about a part time resident domiciled out of state being taxed but it is entirely possible that I missed it. https://www.michigan.gov/documents/t...9_373276_7.pdf
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